In Florida, estate planning and charity are important to consider together. Positioning your estate for wealth creation, retirement and later death should also include a plan for giving. How much you give is a personal matter, but you have no limits. Florida laws allow you to protect your wealth to the degree that you’ve given. You can even protect generational wealth by giving.
Bequest your money
Through a will or trust, what you bequest to a charity has to be received with legal orders. The charity you give to receives your orders to determine how your donation gets used. You have the option of leaving specific orders or general ones. General orders give a charity the right to use your gift how they see fit. As for specific orders, the charity must be able to follow them.
Benefits of charitable planning
Estate planning with charity in mind benefits estate owners. Some of the benefits include:
• Reduced estate taxes: This is the tax required when your estate gets transferred.
• Required minimum distributions: Charity helps you to meet the scheduled withdrawals you need from your retirement accounts.
• Tax exemptions: Charities aren’t taxed, so a trust transferred to a charity is never exposed to taxes.
• Deferred taxes: Retirement accounts have a deferred tax status although their contents are set to be given away.
• Tax deductions: Amounts given to charity are deductible from your total taxable income.
Estate planning in Florida
Estate planning is a reliable way of organizing your giving. Planning ahead not only gives you time to strategize your giving, but a charitable plan might make your estate profitable or more secure. If you give without a plan, however, your impact might fall short of your wishes.